November 06, 2020
Gold eases on stronger dollar; investors eye close U.S. election outcome
(Reuters)-Gold prices eased on Friday on an uptick in the dollar, with investors eyeing U.S. presidential election results which suggest Democrat contender Joe Biden is inching closer to victory, though the prospect of a contested result remained.
Spot gold fell 0.4% to $1,940.86 per ounce, after recording its best day since April 6, jumping 2.4% and hitting an over one-month high in the previous session.
It was also on track for its best week since late July, rising 3.5%.
U.S. gold futures fell 0.1% to $1,944.70 per ounce.
Biden inched closer to winning the White House, though the outcome hinged on a dwindling set of uncounted votes in a handful of battleground states.
President Donald Trump also escalated his efforts to cast doubt on the election’s integrity.
With Democrats trying to flip the traditionally Republican state of Georgia, delayed runoffs could leave control of the Senate up in the air until two days after the next Congress is due to be sworn in on Jan. 3, creating a cloud of uncertainty for the next U.S. president’s legislative agenda.
The dollar index was up by 0.2%, making bullion less attractive for other currency holders.
The Federal Reserve kept its loose monetary policy intact on Thursday and pledged once again to do whatever it can in the next few months to sustain a U.S. economic recovery.
The Bank of England increased its already huge bond-buying stimulus by a bigger-than-expected 150 billion pounds ($195 billion) as it prepared for economic damage from new coronavirus lockdowns and the looming risk of Brexit.
Silver fell 1.6% to $24.93 an ounce. Platinum fell 0.7% to $886.63, while palladium fell 0.3% to $2,370.51.